Bank of England policymaker Andrew Sentance repeated his lone call for an
interest rate rise in September but some of his colleagues thought that the
probability that more monetary easing would be needed had increased.

The minutes for the September meeting showed some members were getting more worried about the growth outlook for the economy.Photo: AP

Reuters

9:58AM BST 22 Sep 2010

Minutes of the September 8-9 meeting published on Wednesday showed an 8-1 vote in favour of leaving interest rates on hold at a record low of 0.5pc, as expected.

But the minutes showed that some members were getting more worried about the growth outlook for the economy, despite worries that persistently high inflation would become embedded in consumer psychology and thought that the chances of more stimulus being needed had gone up.

"The probability that further action would become necessary to stimulate the economy and keep inflation on track to hit the the target in the medium-term had increased," the minutes said.

Most analsyts expect the BoE to hold rates steady well into next year but the minutes are likely to bolster expectations that further easing is still possible, especially after the US Federal Reserve on Tuesday indicated it too could engage in further stimulus.

Samuel Tombs, of Captial Economics, said: "The minutes of September's UK MPC meeting suggest that the arguments proposed by doves on the Committee are gaining greater currency with the other members."